COMPETITION PRACTICES IN THE SUPPLY CHAIN OF AGRICULTURAL PRODUCTS

Abstract

Purpose of the research – This article explores the nature of unfair trading practices (UTPs) in the agricultural and food supply chain, their economic impacts, and the challenges faced by farmers. It also analyzes international experiences—particularly those of the European Union (EU)—to propose relevant policy recommendations for Azerbaijan.
Research methodology – In the article, in addition to comparative analysis and the analysis of regulatory documents and international experience, official statistical data as well as expert interviews conducted with representatives of six companies operating in the food distribution (FMCG) sector were used to assess the transformation of the retail trade structure and buyer concentration in Azerbaijan.
Practical significance – The research highlights the negative impact of UTPs on farmers’ financial stability and the risks they pose to national food security. The findings underscore the need for not only legal reforms but also strengthened enforcement mechanisms, support for farmer organizations, and awareness-raising initiatives.
Research findings – The study shows that combating UTPs requires more than legislative initiatives; it must be reinforced through effective implementation and educational mechanisms. Establishing independent oversight bodies is essential to protect farmers’ rights and ensure fair relations within the supply chain.
Originality and scientific novelty – The research provides a systematic analysis of UTPs in Azerbaijan’s agricultural supply chain within the context of international practices, especially EU Directives. By proposing amendments to the existing “Competition Code,” the article identifies institutional and legal gaps in this domain.